Key Points:
- Market volatility leads to over $138 million in liquidations on centralized exchanges.
- Bitcoin’s price drop below $41,000 contributes to the majority of liquidations.
Intense Market Fluctuations Impact Crypto Traders
Yello Paradisers! The crypto market has experienced significant volatility, resulting in the liquidation of leveraged positions totaling over $138 million in the past 24 hours. This turbulence has predominantly affected long positions, with losses amounting to more than $120 million, while short positions accounted for around $18 million of the total liquidations, as per data from Coinglass.
Bitcoin’s Price Dips Below Key Threshold
Bitcoin, the leading cryptocurrency by market capitalization, has seen a decline of more than 2.5% in the last 24 hours, dropping below the crucial $41,000 mark. Currently trading at around $40,730, Bitcoin’s price movement reflects the heightened uncertainty in the market.
Post-ETF Approval Price Movements
Since the SEC’s approval of multiple spot bitcoin ETFs twelve days ago, Bitcoin has lost over 7% of its value. Following an initial rally above $48,000 post-approval, the price experienced a sharp fall to around $43,000. Analysts are now speculating about a potential further decline below the $40,000 level.
Arthur Hayes’ Bearish Outlook
BitMEX co-founder and Maelstrom CIO Arthur Hayes has expressed a bearish stance, hedging against further downside movement with Bitcoin puts at a strike price of $35,000. His comments on X.com indicate a cautious approach to the current market conditions.
Rising Bitcoin Volatility
The annualized volatility of Bitcoin has escalated since the approval of the spot bitcoin ETFs, jumping from around 46% to over 52%. This increase in volatility has been a driving factor behind the significant liquidations in the market.
Impact on Bitcoin Holder Profits
The recent market movements have also affected the unrealized profits of Bitcoin holders. Following the launch of multiple spot ETFs, the circulating supply of Bitcoin in profit has decreased from over 90% to just above 83%, potentially easing some of the selling pressure.
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